I L L INO I S E C O NOM IC
R E V I EW
The Monthly Illinois Economic Review contains information on national, statewide, and local economic
performance by measuring job growth, unemployment, and business activity. This information is compiled by
IGPA Economist Geoffrey Hewings, director of the Regional Economics Applications Laboratory at the
University of Illinois at Urbana-Champaign with assistance from Yizhou Zhang and Kijin Kim.
MARCH 2015
EMPLOYMENT
E MP LOY ME N T DA TA S UM M A RY








Illinois added 13,800 jobs in February 2015, compared with a 4,800 job loss in January 2015.
Compared to February 2014, Illinois has added 79,800 jobs. The three-month moving average, a
more stable measure of labor market, showed an increase of 8,200 jobs per month.
The Nation added 295,000 jobs at a rate of 0.21%, compared with a 239,000 job gain in January 2015.
The three-month moving average was up by 287,700 jobs per month.
The RMW added 37,700 jobs in February after a 60,200 job gain in January 2015. The three-month
moving average was up by 43,100 jobs per month.
Since the beginning of the recession in December 2007, Illinois has posted negative job changes 39
times and positive job gains 46 times. The state of Illinois now has a net loss of 71,900 jobs since
the beginning of the recession in December 2007.
Since January 2010, when Illinois employment growth resumed after the national recession, Illinois
has added 331,100 new jobs.
By February 2015 in Illinois, Professional & business services and Leisure & hospitality have both
recovered to their previous employment peak levels. The 12-month-ahead job recovery forecasts
show that the future recovery rates in Illinois will increase for every sector except Manufacturing,
Information and Financial Services.
The shadow unemployment rates for Illinois, RMW and the Nation were 10.65%, 10.94% and
10.94%, compared to official unemployment rates of 6.0%, 5.3% and 5.5%.
Through February 2015, the cumulative job growth for Illinois, RMW and the Nation compared to
January 1990 stood at 12.29%, 16.28%, and 29.30%, respectively.
FEBRUARY 2015
March
2015
Positive
Total NonFarm
Employment
E M P LOY ME N T C HA RT
Jan 2015– Feb 2015
Growth
Rate %
Number of
Jobs
Last 12 months
Growth
Rate %
Number
of Jobs
Feb 2015
Shadow
U.R. **
Nation
0.21
295,000
2.39
3,296,000
10.94%
RMW*
0.19
37,700
1.82
354,400
10.94%
Illinois
0.23
13,800
1.37
79,800
10.65%
*RMW stands for Rest of the Midwest including six states, Indiana, Iowa, Michigan, Missouri, Ohio and Wisconsin.
**REAL has estimated a shadow unemployment rate; this is calculated as the unemployment rate that would be observed if labor force participation rates
matched the average for the 15-year period from 1990 to 2004.
2
T OTA L N O N - FA R M E M P L OY M E N T G ROW T H R A T E J A N 1990 – F E B R UA RY 2015
135.00
130.00
125.00
120.00
115.00
110.00
105.00
100.00
IL
RMW
National
95.00
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
L A S T 1 2 M O N T HS TOTA L NO N - FA R M E M P L OY M E NT GROW T H R AT E M A R 2 0 1 4 – F E B 2 0 1 5
Mar/14
Apr/14 May/14
Jun/14
Jul/14
Aug/14
Sep/14
Oct/14
Nov/14
Dec/14
Jan/15
0.35%
Nation
RMW
IL
0.30%
0.25%
0.20%
0.15%
0.10%
0.05%
0.00%
-0.05%
-0.10%
-0.15%
3
Feb/15
Total Non-farm Employment growth rate by Sector Jan 2015 –Feb 2015
20 Construction
30 Manufacturing
40 Trade, transportation & utilities
50 Information
55 Financial activities
60 Professional & business services
65 Education & health
70 Leisure & hospitality
80 Other Services
90 Government
-0.60%
-0.40%
-0.20%
0.00%
0.20%
0.40%
Nation
S HA D OW
0.60%
0.80%
RMW
1.00%
IL
UN E MP LOY ME N T
Unemployment Rate: Official and Shadow
The unemployment rate estimates the percentage of workers in the labor force who are currently unemployed
but who are seeking work. The labor force participation rate is the percentage of the population 16 and older
who are either working or actively seeking work. The participation rate has declined since the 1990s and thus
a number of analysts feel that the official unemployment rate does not account for a larger number of people
who have dropped out of the labor force. REAL has estimated a shadow unemployment rate; this is calculated
as the unemployment rate that would be observed if labor force participation rates matched the average for
the 15-year period from 1990 to 2004.






In the 1990s, the average participation rate was 68.2% in Illinois whereas in 2010, it has been only
66.6%.
For the 15 years from 1990 to 2004, the average participation rate was 68.1% in Illinois.
In the 1990s in the US, the average participation rate was 65.5% whereas in 2010, it has been 66.0%;
for the 15 years from 1990 to 2004, the average participation rate was 66.6%.
The figures on the next page show the difference between the official and shadow unemployment
rate for Illinois (top figure) and the US as a whole (bottom figure).
After 2000, the gap between Illinois’s official and shadow unemployment rates increased until 2006
when it began to shrink. However, the gap went increasing again since 2010.
To bring the two together a further 105,500 jobs would need to be created in Illinois.
4

Illinois
14%
Unemployment Rate
12%
Shadow Unemployment Rate
10%
8%
6%
4%
2%
0%

US
14%
Unemployment Rate
Shadow Unemployment Rate
12%
10%
8%
6%
4%
2%
0%
5
E MPLOYMENT F ORECAST
Illinois
Total non-farm
Construction
Manufacturing
Trade, transportation & utilities
Information
Financial Activities
Professional & business services
Education & health
Leisure & hospitality
Other services
Government
Number of Jobs
(in thousands)
6200
February
2015
5,916,000
209,600
578,500
1,183,100
February
2016 (p)
5,960,400
214,200
570,200
1,199,600
44,400~ 51,100
4,600
-8,300
16,500
Growth Rate
%
0.75%~ 0.86%
2.19%
-1.43%
1.39%
98,300
96,800
-1,500
-1.53%
368,600
927,300
896,600
564,700
252,400
826,900
368,600
947,700
912,100
570,300
252,500
828,300
0
20,400
15,500
5,600
100
1,400
0.00%
2.20%
1.73%
0.99%
0.04%
0.17%
Number of Jobs
Total Non-farm Employment Forecast
6000
5800
5600
5400
5200
5000
4800
4600
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Year
* The values by sector for the number of jobs added are the lower bound of the forecast.
6
Employment Forecast for MSAs
Growth
Sector with
Highest
Growth
Rate
(p)
Sector with
Lowest
Growth
Rate (p)
1.00%~ 2.00%
+
CON(11.71%)
INF (-9.25%)
100~300
0.15%~ 0.24%
+
EDU (2.28%)
LEI (-1.99%)
4,022,800
11,200~-28,000
0.28%~0.70%
+
PRO (2.69%)
FIN (-1.40%)
184,700
185,400
700~ 1,700
0.38%~ 0.89%
+
EDU (1.17%)
INF (-2.93%)
50,700
50,600
-100~200
-0.23%~-0.37%
-
EDU (2.14%)
INF (-4.81%)
Kankakee
44,500
44,900
400~500
0.95%~ 1.07%
+
INF (9.47%)
PRO (-1.48%)
Peoria
179,400
180,500
1,100~2,200
0.60 %~ 1.21%
+
PEO (7.55%)
FIN (-3.75%)
Rockford
151,200
151,800
600~1,100
0.39%~0.71%
+
MAN (1.55%)
CON (-4.28%)
Springfield
112,100
112,000
-20~50
-0.02%~ 0.05%
-
PRO (3.17%)
CON (-6.78%)
Jan 2015*
Jan
2016
(p)*
Number of
Jobs *
Growth Rate
%
Bloomington-Normal
94,200
95,200
900 ~ 1,900
Champaign-UrbanaRantoul
108,000
108,100
Chicago
4,011,600
MSAs
Davenport-Rock
Island-Moline
Decatur
*Total Non-Farm Jobs
Number of Jobs
(in thousands)
105000
Total Non-farm Employment Forecast
Bloomington (BN)
Number of Jobs
(in thousands)
Total Non-farm Employment Forecast
Champaign-Urbana-Rantoul (CU)
120000
100000
115000
95000
110000
90000
85000
105000
80000
100000
75000
95000
70000
90000
65000
60000
1990
1992
1994
Number of Jobs
(in thousands)
4100000
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Year
85000
1990
1992
1994
1996
Number of Jobs
(in thousands)
195000
Total Non-farm Employment Forecast
Chicago (CHI)
4000000
190000
3900000
185000
3800000
180000
3700000
175000
3600000
170000
3500000
165000
3400000
160000
3300000
155000
3200000
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Year
2010
2012
2014
2016
Year
Total Non-farm Employment Forecast
Davenport-Rock-Island-Moline (DRM)
150000
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Year
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
7
Number of Jobs
(in thousands)
62000
Number of Jobs
(in thousands)
50000
Total Non-farm Employment Forecast
Decatur (DE)
60000
48000
58000
46000
Total Non-farm Employment Forecast
Kankakee (KA)
44000
56000
42000
54000
40000
52000
38000
50000
36000
48000
34000
46000
32000
44000
1990
1992
1994
1996
Number of Jobs
(in thousands)
200000
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Year
30000
1990
1992
1994
1996
Number of Jobs
(in thousands)
170000
Total Non-farm Employment Forecast
Peoria (PE)
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Year
2010
2012
2014
2016
Year
Total Non-farm Employment Forecast
Rockford (RO)
165000
190000
160000
180000
155000
170000
150000
160000
145000
140000
150000
135000
140000
130000
130000
125000
120000
120000
1990
1992
1994
1996
Number of Jobs
(in thousands)
120000
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Year
2010
2012
2014
2016
Year
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
Total Non-farm Employment Forecast
Springfield (SP)
118000
116000
114000
112000
110000
108000
106000
104000
102000
100000
98000
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
8
Barometer of Job Recovery
Illinois Recovery Scenarios
Growth Rate
To Recover
At the point of
2015- February
At the point of
2010-June
In 5 years
49,300 jobs/year
110,000 jobs/year
In 8 years
30,800 jobs/year
68,800 jobs/year
In 10 years
24,700 jobs/year
55,000 jobs/year
In 15 years
16,400 jobs/year
36,700 jobs/year
* The figure 577,600 is the number of jobs needed for the Illinois economy to recover to the previous employment
peak, Nov-2000. The gap between the previous peak, Nov-2000 and the previous lowest point, Dec-2009 is
472,100. Adding 105,500, the number of jobs that needed to bring the shadow and official unemployment rates
together, the total number of jobs that Illinois needs to create is 577,600.
** The figure 27,500 represents the jobs recovered from December 2009 (previous lowest level) through June 2010.
*** The figure 331,100 represents the jobs recovered from December 2009 through February 2015.
9
I LLINOIS J OB R ECOVERY BY S ECTOR
Illinois job recovery by sector from Dec 2007 –February 2015
Job Changes in
Recession Period*
Job Changes in
Jan 2010-Feb
2015
Recovery Rate
Forecasted Job
Changes Jan
2010-Feb 2016
Forecasted
Recovery Rate
Construction
-63,800
5,700
8.93%
10,300
16.14%
Manufacturing
-114,600
23,700
20.68%
15,300
13.35%
Trade, transportation & utilities (TTU)
-97,700
62,800
64.28%
78,700
80.55%
Information
-11,300
-6,100
-53.98%
-7,600
-67.26%
Financial activities
-33,000
3,900
11.82%
3,600
10.91%
Professional & business services
-92,200
145,900
158.24%
166,300
180.37%
Education & health
32,600
74,700
-
90,200
-
Leisure & hospitality
-22,300
52,800
236.77%
58,400
261.88%
Other Services
-5,900
-3,600
-61.02%
-3,500
-59.32%
Government
*Recession period: Dec 2007- Dec 2009
6,000
-29,800
-
-28,000
-


Recovery by
Sector



During the recession period of December 2007-December 2009, 8 out of
10 Illinois sectors experienced negative job growth. Education & health
and Government were the only 2 sectors that had positive job growth
during the recession.
Since January 2010, Illinois employment growth resumed. Construction,
Manufacturing, Trade, transportation & utilities, Financial activities,
Professional & business services and Leisure & hospitality have
recovered 8.93%, 20.68%, 64.28%, 11.82%, 158.24% and 236.77%
respectively, from the jobs lost during the recession.
By February 2015, Professional & business services and Leisure &
hospitality had both recovered to their previous employment peak levels.
However, recovery rates for sectors such as Information and Other
Services are still negative, namely -53.98% and -61.02% respectively.
The 12-month-ahead job recovery forecasts show that the future
recovery rates in Illinois will increase for every sector except
Manufacturing, Information and Financial Services.
10
C ATCH UP S CENARIO
Catch-up Scenario* of Previous Peak Job Index in Illinois
Nation
RMW
IL
Previous Peak
Current
Catch-up
126.49
(Dec-2007)
119.39
(Jun-2000)
115.00
(Nov-2000)
129.30
(Feb2015)
116.28
(Feb2015)
112.29
(Feb2015)
Positive
growth
Positive
growth
Positive
growth
Recovery rates at
February 2015**
132.04%
100.66%
82.16%
Metro Areas***:
Bloomington
Normal
ChampaignUrbana
Chicago
Davenport- Rock
Island-Moline
Decatur
Kankakee
Peoria
Rockford
Springfield
Metro-East
142.06
(Feb 2002)
116.26
(Jan 2009)
114.82
(Nov 2000)
115.06
(Mar 2008)
112.38
(Jan 2000)
125.66
(Nov 2011)
122.09
(Aug 2008)
122.81
(Nov 2000)
110.94
(Aug 2000)
114.97
(Jun 2001)
132.17
(Jan 2015)
109.46
(Jan 2015)
112.35
(Jan 2015)
111.61
(Jan 2015)
94.25
(Jan 2015)
123.92
(Jan 2015)
115.66
(Jan 2015)
112.16
(Jan 2015)
106.01
(Jan 2015)
105.63
(Jan 2015)
Negative
growth
Negative
growth
Positive
growth
Positive
growth
Negative
growth
Positive
Growth
Positive
growth
Positive
growth
Positive
growth
Negative
growth
NA
NA
98.35%
63.81%
NA
86.87%
38.88%
44.51%
153.82%
NA
* Catch-up scenarios are based on average monthly growth rate over the previous 12 months. Nation already passed its previous peak at February
2005.
**Recovery rates are percentage of jobs added since the last official end of the recession.
*** Due to lag of data release schedule there is one month of time lag in the catch-up scenario for metro areas.
NOTE: The US Bureau of Labor Statistics and the Illinois Department of Employment Security changed the way national and state employment
data are coordinated to be more consistent. As a result, there have been some significant changes in estimates for Illinois over the past year.
11
CBAI INCREASED IN JANUARY
This index is based on national indices of leading indicators and is a barometer for the economy, tracing the
path of growth or contraction through to the current period and then forecasts up to 24 months into the
future.

The Chicago Business Activity Index (CBAI) increased to 100.0 in January from 92.9 in December. The
rise is attributed to positive job growth in the nonmanufacturing and construction sectors and to improved
retail activities in the Chicago area.

In January, the national and regional economies shared mixed features. The Federal Reserve Board
announced that the industrial production index decreased 0.3 percent in January after having declined 0.2
percent in December.

Capacity utilization for the industrial sector fell 0.3 percentage points to 79.1 in January. The Chicago Fed
reported that the Chicago Fed National Activity Index (CFNAI) edged up to +0.13 in January from -0.07 in
December, led by a fall in employment- and production-related indicators. In the Chicago region,
employment in nonmanufacturing and construction rose 0.21 percent and 0.54 percent, respectively, in
January while manufacturing employment fell 0.24 percent. Retail sales are estimated to have increased
1.56 percent in January.

In the coming months, the national economy is likely to stay on the path to recovery. The economic growth
reflected in the CFNAI-MA3 suggests that national economic activity was above its historical trend. The
Bureau of Labor Statistics reported that total nonfarm payroll employment rose by 295,000 and the
unemployment rate edged down to 5.5 percent in February. Considering recent national economic
conditions and movements of projected CBAI, the Chicago economy is expected to continue its recovery
trend over the next several months.
Chicago Business Activity Index
CBAI (Current: 100.0)
1 month 3 month 1 year
Historical (ago)
92.9
107.9
101.6
Forecast (ahead)
110.1
99.9
-
12
METROPOLITAN STATISTICAL
AREA LEAGUE TABLES
MSA LEAGUE TABLES SUMMARY*

Decatur (2nd to 9th) experienced the deepest fall in January 2015.

Champaign-Urbana-Rantoul (1st to 3rd), Chicago (4th to 5th), Metro-East (3rd to 6th),
Springfield (5th to 8th) and Kankakee (9th to 10th) also dropped in terms of rank from last
month.

The most remarkable upward move in January was recorded for Peoria (10th to 1st).

In the 12 months growth league table, upward moves were recorded for Rockford (3rd to 2nd),
Peoria (10th to 4th) and Davenport-Rock Island-Moline (8th to 5th).

Downward moves were recorded for Chicago (2nd to 3rd), Springfield (4th to 6th), Metro-East
(5th to 8th) and Decatur (6th to 10th).

In the 12 months growth league table, Decatur dropped to the last place and Champaign-UrbanaRantoul remained in the first place.
*NOTE: The US Bureau of Labor Statistics and the Illinois Department of Employment Security changed the way national and state
employment data are coordinated to be more consistent. As a result, there have been some significant changes in estimates for
Illinois over the past year.
13
MSA League Tables*: Non-farm Employment Growth Rate
Monthly growth:
Rank
December 2014
January 2015
Rank
Change**
1
Champaign-Urbana-Rantoul(0.26%)
Peoria(0.85%)
1
(+9)
2
Decatur(0.26%)
Davenport-Rock Island-Moline(0.6%)
2
(+4)
3
Metro-East(0.16%)
Champaign-Urbana-Rantoul(0.34%)
3
(-2)
4
Chicago(0.14%)
Bloomington-Normal(0.25%)
4
(+4)
5
Springfield (0.11%)
Chicago(0.2%)
5
(-1)
6
Davenport-Rock Island-Moline(0.06%)
Metro-East(0.18%)
6
(-3)
7
Rockford (-0.11%)
Rockford (-0.05%)
7
 (+0)
8
Bloomington-Normal(-0.22%)
Springfield (-0.09%)
8
(-3)
9
Kankakee(-0.37%)
Decatur(-0.68%)
9
(-7)
10
Peoria(-0.73%)
Kankakee(-0.99%)
10
(-1)
Growth over last 12-months:
Rank
December 2014
January 2015
Rank
Change**
1
Champaign-Urbana-Rantoul (1.44%)
Champaign-Urbana-Rantoul (1.95%)
1
(+0)
2
Chicago (0.94%)
Rockford (1.63%)
2
(+1)
3
Rockford (0.59%)
Chicago (1.53%)
3
 (-1)
4
Springfield (0.09%)
Peoria (0.58%)
4
(+6)
5
Metro-East (0.08%)
Davenport-Rock Island-Moline (0.56%)
5
(+3)
6
Decatur (0.01%)
Springfield (0.52%)
6
 (-2)
7
Kankakee (-0.46%)
Kankakee (0.43%)
7
(+0)
8
Davenport-Rock Island-Moline (-0.7%)
Metro-East (-0.14%)
8
 (-3)
9
Bloomington-Normal (-0.99%)
Bloomington-Normal (-1.05%)
9
(+0)
10
Peoria (-1.03%)
Decatur (-1.2%)
10
 (-4)
MSA League Tables are based on revised employment data. For instances of equal growth rate for multiple MSAs ranks
are decided based on change of growth rate from previous month.
*
14
Unemployment Claims (Initial)
Unemployment Claims
(Initial, IL)
Unemployment Claims
(Initial, US)
40,000
1,200,000
Initial Claims (IL)
Initial Claims (US)
35,000
1,000,000
30,000
800,000
25,000
`
600,000
20,000
400,000
15,000
200,000
Jan/15
Jan/14
Jan/13
Jan/12
Jan/11
Jan/10
Jan/09
Jan/08
Jan/07
Jan/06
Jan/05
Jan/04
Jan/03
Jan/02
Jan/01
5,000
Jan/00
10,000
0
15